Numerous pot growing measures on November ballot

In just 11 days, voters throughout Monterey County will be asked to decide how medical marijuana should be regulated.

“It does provide a legal avenue for which to cultivate,” said Aaron Johnson, a lawyer who specializes in the cannabis industry.

Johnson says for many years, growers have operated in a grey area — not illegal, but not quite regulated, either.

“The transactions are occurring around us every day and we don’t really get a community benefit from that,” said Johnson.

That is something many local governments are trying to change with ballot measures that would tax medical marijuana growers.

In Gonzales, Measure W would tax commercial medical cannabis operations at $25 per square foot on cultivation and manufacturing. Proponents say it could raise an estimated $1.37 million a year in revenues for the city.

The City of Greenfield goes even further with its proposed cannabis business tax. Measure O adds a tax of $25 per square foot on medical and non-medical cannabis cultivators, plus a 10 percent tax on all other cannabis activities. The estimated annual income would reach $2 million for the city.

Other cities have proposed taxes as well: Del Rey Oaks (Measure A), King City (Measure J), and Salinas (Measure l).

Monterey County is proposing Measure Y, which would tax commercial cannabis businesses in unincorporated areas of the county. The measure calls for a tax of $25 per square foot and $5 per square foot on nurseries.

Monterey County Supervisor John Phillips says the medical marijuana industry poses numerous challenges to local government, including the county’s health department, resource management agency and sheriff’s office.

“In order to regulate properly, it requires a lot of resources from the county,” said Phillips. “And we need to make sure those are reimbursed by the industry that’s seeking to do business in Monterey County.”

The measures face organized opposition, including the Libertarian Party of Monterey County, which is encouraging a hard “No” vote on all marijuana measures. The group’s website says, “With high taxes and regulations, many growers will instead invade public parklands and illegally grow marijuana, threatening the environment and hikers.”

Others are concerned that taxes will affect how much medical marijuana patients will have to pay for their medicine, but Johnson dismisses those concerns.

“The patient is likely to see a benefit from increased production,” he said.

In the long run, he says, a regulated market would ease growers’ worries about raids and prosecution for growing.